Key Takeaways
- • KenGen's charitable foundation risks losing more than Sh363 million of endowment money placed in fixed deposits with Stima Investment Co-operative Society in 2015-2016, with the claimed balance at Sh363.03 million as of 30 September 2024.
- • The High Court entered judgment on admission for Sh90 million in a September 2026 ruling, ordering the contested balance of roughly Sh273 million to full trial after the foundation rejected Stima's offer of 19 one-bedroom units in Ruiru, Kiambu.
- • The Auditor-General's report dated 4 September 2026 found management could produce no approval, investment policy, or due diligence evidence for the placement, and judged recoverability of the investment "doubtful."
- • The placement carried a promised 16.3 percent compounding rate, well above the then-prevailing 364-day Treasury bill yield of about 10.85 percent and Stima's own 12 percent internal cap.
- • A 2019 Deloitte forensic audit found roughly Sh500 million in irregular land purchases at Stima, and a documented case showed the foundation's Sh100 million was diverted to pay members' dividends.
Summary
KenGen risks writing off more than Sh363 million of endowment money that its charitable KenGen Foundation placed in fixed deposits with Stima Investment Co-operative Society between 2015 and 2016, according to an investigative report published by Kenya Insights. The foundation, a public charitable trust launched in 2012, placed two Sh50 million tranches into what Stima called its fixed-deposit real-estate fund. Interest was to compound at roughly 16.3 percent on continuous rollover, a rate that exceeded both the then-prevailing 364-day Treasury bill yield of about 10.85 percent and Stima's own internal 12 percent cap. A partial repayment of Sh10 million arrived in September 2021, and by 30 September 2024 the claimed balance stood at Sh363.03 million.
Unable to liquidate, the foundation filed Commercial Suit E625 of 2024 on 24 November 2024. Stima admitted liability for only Sh90 million and offered 19 one-bedroom units in Ruiru, Kiambu, in settlement, an offer the foundation rejected. In a September 2026 ruling, the High Court entered judgment on admission for the Sh90 million and ordered the contested balance of about Sh273 million to full trial. The Auditor-General, in a report dated 4 September 2026, recorded that management could produce neither approval for the placement nor the policy that supposedly guided it, nor evidence of due diligence, concluding that "recoverability of the investment remains doubtful." KenGen has nevertheless continued to fund the foundation, donating Sh100 million in the year to June 2026.
The report describes the placement as part of a broader pattern. A 2019 Deloitte forensic audit, which triggered the Cooperative Commissioner's dissolution of Stima's entire board, found roughly Sh500 million in irregular land purchases, including occupied parcels bought without site visits and deposits collected before preliminary agreements were signed. In one documented case, the foundation's Sh100 million, booked at the elevated 16 percent rate, was diverted to pay ordinary members' dividends for two years. Stima's debt had reached at least Sh150 million by early 2019. Stima DT Sacco, the large deposit-taking society, publicly distanced itself, confirming the two entities are separately governed and regulated.
The article also cites tribunal dockets showing similar refund claims from individual investors in real-estate development accounts and plots in Lamu, Bahati and Isinya. It draws comparisons to the Cytonn and SIC collapses, where double-digit fixed-income rates funded slow-moving property. Albert Mugo, who led KenGen from January 2014 until his retirement in August 2017, has since served on Stima Sacco boards and other energy-sector bodies; the placement occurred during his tenure as chief executive. The article characterises the foundation's decision as a governance failure, noting that charitable endowment capital was placed without documented approval or policy. The court's ruling crystallised Sh90 million, while the balance, missing governance records and wider member refund claims remain open.
Unable to liquidate, the foundation filed Commercial Suit E625 of 2024 on 24 November 2024. Stima admitted liability for only Sh90 million and offered 19 one-bedroom units in Ruiru, Kiambu, in settlement, an offer the foundation rejected. In a September 2026 ruling, the High Court entered judgment on admission for the Sh90 million and ordered the contested balance of about Sh273 million to full trial. The Auditor-General, in a report dated 4 September 2026, recorded that management could produce neither approval for the placement nor the policy that supposedly guided it, nor evidence of due diligence, concluding that "recoverability of the investment remains doubtful." KenGen has nevertheless continued to fund the foundation, donating Sh100 million in the year to June 2026.
The report describes the placement as part of a broader pattern. A 2019 Deloitte forensic audit, which triggered the Cooperative Commissioner's dissolution of Stima's entire board, found roughly Sh500 million in irregular land purchases, including occupied parcels bought without site visits and deposits collected before preliminary agreements were signed. In one documented case, the foundation's Sh100 million, booked at the elevated 16 percent rate, was diverted to pay ordinary members' dividends for two years. Stima's debt had reached at least Sh150 million by early 2019. Stima DT Sacco, the large deposit-taking society, publicly distanced itself, confirming the two entities are separately governed and regulated.
The article also cites tribunal dockets showing similar refund claims from individual investors in real-estate development accounts and plots in Lamu, Bahati and Isinya. It draws comparisons to the Cytonn and SIC collapses, where double-digit fixed-income rates funded slow-moving property. Albert Mugo, who led KenGen from January 2014 until his retirement in August 2017, has since served on Stima Sacco boards and other energy-sector bodies; the placement occurred during his tenure as chief executive. The article characterises the foundation's decision as a governance failure, noting that charitable endowment capital was placed without documented approval or policy. The court's ruling crystallised Sh90 million, while the balance, missing governance records and wider member refund claims remain open.
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